Module 28
Module 28
Framework for
Spreadsheet
Simulation
1
Framework for Spreadsheet Simulation
• In this module, we shall
examine a framework
for Spreadsheet
simulation
2
Motivation
• We have seen several
examples of simulation.
• Can we convert those
examples into a
framework?
3
Definitions
– First of all, model
developer must
define:
• Model Inputs
• System States
• Model outputs
4
What are Inputs
• Inputs are the
exogenous variables
that are (usually)
defined independently
of other system
characteristics
• E.g. Probability of heads
in a coin toss
• Service times
5
What are Inputs
• Interarrival time
distribution in a queuing
system
• Demand distribution in
an inventory model
6
Implications of Input Variables
– These input
specifications are
useful
– They can help
generate:
– Random activity
times and other
random variables
– Whereas other
inputs may be
constants
– E.g. policy or
decision parameters
7
Output variables
• They compute measures
of system performance
(also known as model
responses)
• E.g. an output could be:
• An individual customer’s
waiting time (in a
queue)
• The cost of an individual
transaction in an
inventory system
8
Associated Responses
• Associated responses
could be:
• Average wait time in a
queue
• Average cost per unit
time in an inventory
system
9
Summary
– In this module, we have
examined a generic
framework for
developing simulation
models (spreadsheet-
based)
– It essentially follows a
step-by-step procedure
10